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Coinbase launches сryptocurrency tax calculator

Coinbase has launched a new profit/loss calculation tool as part of efforts to support its user base in accordance with U.S. tax requirements.

13.Mar.18 1:55 AM
By Daria Zaytseva


Coinbase launches сryptocurrency tax calculator

In a published blog post, the firm explained that the calculator can be used to create a report that outlines their capital gain (or losses) on its platform using a first-in-first-out (FIFO) accounting method.

However, this tool contains several caveats, namely that it is primarily targeted at users who have bought and sold exclusively on Coinbase - and is not recommended for those who have acquired digital assets elsewhere or participated in an initial coin offering.

The issue of taxation and cryptocurrencies has always been someone's controversial issue, ever since the U.S. Internal Revenue Service announced in 2014 that it would treat such assets as a taxable form of ownership rather than currency.

Concern about the ambiguity of the IRS management - in its new blog, Coinbase writes that they understood that taxes on the digital currency could be complicated caused complaints from professional circles.

The topic also bears additional significance for Coinbase specifically, which was the objective of the IRS litigation process, as it requested information about U.S.-based users while trying to sniff out potential tax officials.

Ultimately, the startup would send information on the 13,000 users who had transacted on the platform between 2013 and 2015, after being ordered by a district judge in the United States in November 2017.

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